Which of the Following Is Not a Valid Assumption of the Break?even

question 81

Multiple Choice

Which of the following is not a valid assumption of the break?even model?

• A) only one product is involved
• B) everything which is produced will be sold
• C) the revenue per unit will be the same regardless of volume
• D) the fixed cost per unit will be the same regardless of volume
• E) the variable cost per unit will be the same regardless of volume

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Definitions:

Collection System

A method or process used to gather or accumulate items, information, or debts from various sources.

Countermand

To revoke, cancel, or reverse an order or directive that has been previously issued.

Stop Payment Order

A request made to a bank by an account holder not to pay a check or payment that has been issued but not yet cashed.

Banker's Acceptance

A short-term financial instrument issued by a company but guaranteed by a bank as accepted for payment at a future date, often used in international trade.